Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 3.2% - Here's Why

Key Points

• Taiwan Semiconductor Manufacturing (TSM) shares rose by 3.2% during trading, with a significant increase in volume of 20.27 million shares compared to the average of 14.56 million.
• Brokerages have a consensus rating of "Moderate Buy" for TSM, with analysts setting price targets between $270 and $400.
• The company declared a quarterly dividend of $0.8348 per share, reflecting a positive increase from the previous dividend of $0.65, with an annual yield of 1.1%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares shot up 3.2% during trading on Wednesday . The company traded as high as $306.61 and last traded at $305.48. 20,273,566 shares changed hands during trading, an increase of 39% from the average session volume of 14,560,255 shares. The stock had previously closed at $295.94.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on TSM. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $325.00 to $330.00 and gave the stock an "overweight" rating in a research note on Thursday, October 9th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 8th. Needham & Company LLC reiterated a "buy" rating and set a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Itau BBA Securities started coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, October 7th. They set an "outperform" rating for the company. Finally, Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a "positive" rating in a research report on Friday, October 10th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $333.33.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a market capitalization of $1.58 trillion, a PE ratio of 34.83, a P/E/G ratio of 1.45 and a beta of 1.28. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.37 and a quick ratio of 2.15. The firm has a fifty day moving average price of $258.46 and a 200 day moving average price of $219.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The business had revenue of $30.07 billion during the quarter, compared to the consensus estimate of $28.50 billion. During the same period in the prior year, the business posted $1.48 earnings per share. Taiwan Semiconductor Manufacturing's revenue was up 44.4% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be issued a dividend of $0.8348 per share. The ex-dividend date of this dividend is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.1%. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's payout ratio is currently 29.65%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds have recently added to or reduced their stakes in the business. BSW Wealth Partners grew its holdings in shares of Taiwan Semiconductor Manufacturing by 1.8% during the 3rd quarter. BSW Wealth Partners now owns 9,890 shares of the semiconductor company's stock worth $2,762,000 after purchasing an additional 173 shares in the last quarter. Spirit of America Management Corp NY raised its position in shares of Taiwan Semiconductor Manufacturing by 75.0% during the third quarter. Spirit of America Management Corp NY now owns 1,050 shares of the semiconductor company's stock worth $293,000 after acquiring an additional 450 shares during the last quarter. Johnson & White Wealth Management LLC bought a new stake in Taiwan Semiconductor Manufacturing in the third quarter valued at about $211,000. Iams Wealth Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 25.2% in the third quarter. Iams Wealth Management LLC now owns 2,860 shares of the semiconductor company's stock valued at $799,000 after acquiring an additional 576 shares during the period. Finally, JGP Wealth Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 8.8% in the third quarter. JGP Wealth Management LLC now owns 3,221 shares of the semiconductor company's stock valued at $928,000 after acquiring an additional 260 shares during the period. Institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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